Thursday, June 30, 2011

Uhuru hits out at tax show offs

BY ROBIN NJOGU 


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Deputy PM Uhuru Kenyatta/File
NAIROBI, Kenya, Jun 30 - Deputy Prime Minister and Minister for Finance Uhuru Kenyatta on Thursday hit out at leaders whom he accuses of politicising the constitutional requirement for all Kenyans including Members of Parliament to pay taxes. 

In a statement where he appeared to defend MPs who do not have the finances to clear their tax arrears, Mr Kenyatta said the new Constitution had caught the lawmakers mid-stream.

"It is morally wrong for those who have the ability to comply to make a public spectacle and paint negatively other Members of Parliament who may be willing to comply but are unable to immediately do so in a lumpsum payment," he explained. (Tax arrears are estimated at Sh2 million for MPs)."

He said tax compliance is a constitutional issue that goes beyond any individual's position.

"Over the past few days, I have received numerous messages both directly and through my Facebook and Twitter accounts by Kenyans asking me whether or not I have paid taxes. In this regard, I would like to clearly state the following. Tax compliance is a constitutional, moral and developmental issue that goes beyond any one individual's personal position, notwithstanding the fact that some may want to make a public declaration of their paying," he said.

Mr Kenyatta says millions of Kenyans from all walks of life quietly pay their taxes regularly as it is an obligation for all Kenyans to do so.

"Payment of taxes and indeed the fulfilment of several other obligations under this new Constitution should not degenerate into a political competition but should be regarded as a moral and civic duty of all Kenyans. As we go through this transitional process, this is one amongst many hurdles that we as Kenyans will have to overcome. In the spirit of a new Kenya, let us overcome these hurdles together, as opposed to against one another," he said.

The deputy premier states that there's nothing special about any one category of Kenyans fulfilling their civic duties, as the law is very clear on the taxation requirements placed on all citizens.

"The Constitution is also very clear on the taxation requirements that have been placed on all citizens including myself. The consequences of non-compliance are equally well stipulated within our laws. Ultimately, if there are Kenyans who haven't fulfilled these obligations, it will come to light. However, in as much as this debate is healthy for the country, it should not be conducted on the basis of who has or hasn't paid but rather on the principle of the matter itself," he said.

The statement comes days after Prime Minister Raila Odinga caused a stir at the Kenya Revenue Authority's Times Tower offices on Monday, when he joined the queues to remit his tax arrears.

The Prime Minister queued with other taxpayers and filled out the requisite forms to pay Sh3,392,344 owed to the taxman.

Mr Odinga, who paid arrears based on calculations by the accounts departments in the Office of the Prime Minister and Parliament, said he did so because it was required by the Constitution.

Vice President Kalonzo Musyoka also announced that he would hand in his payments to the Kenya Revenue Authority on Thursday afternoon. Other leaders who have so far cleared their arrears include Assistant Minister Margaret Wanjiru and MPs Gideon Mbuvi (Makadara) and Mutava Musyimi (Gachoka).

They joined Peter Kenneth (Gatanga) and Kangundo's Johnson Muthama who have been remitting their taxes since 2008.

A section of MPs are however adamant that they will not comply with constitutional requirement: "I am not running for presidency, so I will not pay," said one MP.

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President Kibaki in Equatorial Guinea for AU summit


President Mwai Kibaki has arrived in Malabo, Equatorial Guinea to attend the 17th Ordinary Session of the Assembly of Heads of State and Government of the African Union (AU) which opens Friday.
The summit, whose theme is "Accelerating Youth Empowerment for Sustainable Development", is geared towards providing better environment and skills for African youths to excel and contribute meaningfully to peace andsecurity, socio-economic growth and sustainable development of the continent.
During the Summit the Heads of State and Government of the African Union are expected to ratify the African Youth Charter and endorse the implementation of the medium term priorities in the plan of action for the African Youth Decade.
In Kenya, the main policy documents on youth include the Kenya National Youth Policy 2007 and the ‘Youth Employment Marshal Plan’ which are aligned to the country’s development blueprint, Vision 2030.
Under the Youth Employment Marshal Plan, the Kenya Government aims at creating 500,000 new jobsper year through initiatives, collaborations and partnerships between the public and private sectors.
Through the Youth Employment Marshal Plan, a revolving fund under the Youth Enterprise Development Fund (YEDF) has facilitated entrepreneurship training, marketing of youth enterprisesproducts and services, provision of commercial infrastructure and also youth employment in the international labour market.
Kenya, which is a signatory to the African Youth Charter, is establishing youth empowerment centres in all the Constituencies. Already 104 such centres are ready for youth to access ICT, recreational facilities, counseling and health and training in creative arts.
Kenya is endeavoring to complete ratification of the African Youth Charter and is also developing indicators to monitor implementation of national youth policies. The government has committed 15 per cent of its national budget to health as per Abuja-15 declaration.
Alongside the official theme of the summit, the Heads of State and Government of the African Union will also consider and discuss the report of the AU Peace and Security Council (PSC) on its activities in Africa. The PSC, which Kenya is a founding member, is a standing decision-making organ for the prevention, management and resolution of conflicts in Africa. It is also a collective and early warning arrangement to facilitate timely and efficient response to conflicts and various crisis situations in the continent.
They will discuss ways of strengthening the continent’s capacity to cope with the effects of climate change and management of disasters. Majority of African countries rely heavily on their natural resource base for development hence the need for Africa to formulate policies and initiatives that will protect and maintain its environment in order to promote sustainable development.

- Presidential Press Service

ODM puts off grassroots poll


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Orange Democratic Movement (ODM) deputy leader Musalia Mudavadi said June 30, 2011 that the party has postponed its grassroots party elections scheduled to begin Friday. FILE
Orange Democratic Movement (ODM) deputy leader Musalia Mudavadi said June 30, 2011 that the party has postponed its grassroots party elections scheduled to begin Friday. FILE
By ASHLEY LIME alime@ke.nationmedia.com
Posted  Thursday, June 30 2011 at 15:03
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The Orange Democratic Movement (ODM) has postponed its grassroots party elections scheduled to begin Friday.
This follows orders issued by the High Court on Wednesday stopping the entire process after four of its members filed an application to block State officers and politicians from contesting for party positions.
It is the fourth time the Orange party has put off the polls.
Speaking at the Orange House Thursday, deputy party leader Musalia Mudavadi said that though the party had learnt of the court’s move through the media, it would suspend its elections pending the court’s decision.
“ODM shall suspend the scheduled grassroots elections until the case is fully determined in compliance with the court order.
“This is despite the fact that the party learnt through the media that the High Court issued an order yesterday (on Wednesday) prohibiting it from conducting grassroots party elections that were planned this week,” said Mr Mudavadi.
The orders, issued by Lady Justice Jeanne Gacheche, barred the registrar of political parties from accepting results of elections from any political party or registering their party officials unless the elections conformed to Article 77 (2) of the Constitution and section 15 of the Political Parties Act.
Mr Mudavadi accused the court of issuing orders without consulting all involved parties and entertaining last-minute petitions against matters that have cost the party “huge amounts of money".
“It is unfortunate that the order preventing our long overdue elections was issued ex-parte without giving the party an opportunity to be heard.
“We have noticed this worrying trend whereby the courts have entertained last minute applications without due regard to the cost or inconvenience to those adversely affected,” said Mr Mudavadi, citing the suspension of the Kamukunji by-elections as another example.
He further added that the four who filed an application to the High Court, two of whom he said according to media reports were members of the party, should have addressed their issues through normal party channels and structures as provided for by the Political Parties Act and the ODM constitution rather than institute legal proceedings without the party’s knowledge.
The four who filed the petition include Mr Japheth Kiio, Mr Julius Gaya, Mr Vincent Ouma and Mr Jeremiah Ambassa who cited Article 77 (2) of the Constitution that  states that “any appointed State Officer shall not hold office in a political party.”
ODM Secretary General Anyang’ Nyong’o called upon the court to issue a clear interpretation according to the Constitution on who should contest or hold different positions in political parties, adding that learnt of the High Court’s move while out of the country.
“The court should come out clearly and interpret the uncertainties that we are currently experiencing; who should or shouldn’t hold a political party position.
“Interpretation can be problematic. The Cabinet secretary is a State officer but we are ministers. Are we also State officers?” Mr Nyong’o said.
Article 260 of the Constitution states that State officers include offices of the President, vice president, MPs, members of county assembly, cabinet secretaries or an office established and designed as a State office by national legislation.
ODM leaders asked the Judiciary to expedite the proceedings on the party’s election issues so that elections can be conducted without further delay.
Returning officers were also asked to surrender all election documents and materials to the ODM National Elections Board.

Sh45m fine for Mwau business deal



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Any American company, bank or corporation that will transact business with Kilome MP Harun Mwau risks being fined $500,000 (Sh45 million). Any American individual who will do business with Mwau will face penalties of up to $250,000 (Sh22.5 million) and 20 years in jail. These penalties are spelt out in the US' Foreign Narcotics Kingpin Designation Act. The Act, among other things, includes seizure of property under American jurisdiction.
Though the director of the US Treasury’s Office of Foreign Assets Control Adam Szubin has explained the Act is civil in nature, any American or US corporation which violates this Act is considered to have committed a criminal offence and is dealt with under the International Emergency Economic Powers Act which prescribes hefty penalties for the offenders.
On June 1, 2011, President Obama identified Mwau alongside businesswoman Naima Mohammed Nyakiniywa as among the significant foreign narcotics traffickers. Mwau has however denied the allegations maintaining that he is a clean man.
The US government says Mwau has been using Kenyan Diplomatic Passport A921579 with his year of birth given as June 24, 1948. It has indicated that Nyakiniywa, also known as Mama Lela has been using Kenyan Passport A735832 year of birth given as September 2, 1962. No further details have been released on the two in US' OFAC website. There are however more Kenyans in the list of the Specially Designated Nationals and Blocked Persons.
The list was updated by OFAC on June 23, 2011 with hundreds of individuals and corporatons named at different dates and years. In the list include Kenyan Ruprah, Sanjivan Singh aka NASR, Samir.
The US says Ruprah was born on August 9, 1966 in Kisumu and his Kenyan passport issued in the United Kingdom. He is listed as a businessman but who also had a Liberian passport and who at one time worked as the Deputy Commissioner, Bureau of Maritime Affairs of Liberia.
Also named is Salem Fahid Muhamad Ali who has several other names and whom the US says was born on February 19, 1976 in Mombasa. Named also is one Afadey aka Issa, with the US saying he was born in Malindi in 1973. Also listed as blocked is one Suweidan, Sheikh Ahmad Salem aka ALLY Ahmed born in Mombasa on April 9, 1969.
Named also is an organisation going by the name Vazir which US says has a branch in Kenya. The organisation, according to the US government has also been using other names such as Alharamain Foundation, Alharamain Humanitarian Foundation and  Al-Haramain Humanitarian Foundation. In the list also is Sudan Air aka Sudan Airways which the US says has been operating in other countries including Kenya.